Last Updated on November 14, 2023 by Ben
You are probably familiar with how Venezuela’s inflation has skyrocketed. If you have been following market news, it is no secret that the economy is in poor condition. Some people are also losing out on their retirement money, which means it’s a great time to check out precious metals IRAs.
If you’ve already explored IRAs, it’s also best to check the status of your investments. Is your gold IRA eligible? Have you invested in approved precious metals? Find out more as you read into this article!
At a Glance Rating:
2. Red Rock Secured: Runner up – Best at Home Gold IRA (4.8/5)
Top 5 Gold IRA Companies Review
Augusta Precious Metals: Editor’s Choice – Great Gold IRA Company Overall (4.9/5)
Unlike other precious metals businesses, Augusta Precious Metals displays a breakdown of all their product and service costs in the first meeting. This practice enables investors to be ready for the amount they need before picking them as custodians.
Despite having a wide range of rare metal assets, their selection has restrictions. They only have gold coins, bullion, and silver bullion. Augusta Precious Metals do not offer palladium and palladium options.
- Has an A+ grade from BBB
- All products have a 99% purity level
- Operates with transparent fees
- Has no lawful complaints for a decade
- Some customer service concerts
- Lack of platinum and palladium selections
Goldco: Great Buyback Program (4.6/5)
This particular gold and silver IRA company engages in a “white-glove” level of customer assistance. This is where a company specialist assists a designated client in every transaction. However, this company’s downside is its non-disclosure gold IRA prices.
Still, Goldco is among the most reputable gold and silver IRA dealers. They manage and control investment plans for gold rollover IRA account proprietors, making investing more secure and seamless.
- With white-glove-level customer assistance
- Provides investor education assistance
- Has a reasonable buyback program with a high fee
- Has a wide selection of precious metals
- Not up-front with their fees
- Limited bullion, platinum, and palladium choices
American Hartford Gold: Best Prices on Bullions (4.5/5)
American Hartford Gold (AHG) delivers its customers complete access to content libraries. It includes various topics, including how investors can acquire precious metals and develop better investment judgments.
To top things off, they operate with a variable fee structure. American Hartford Gold’s annual service costs are proportionate to the amount their clients use in their gold IRA account for a specific time.
- Family-owned investment firm
- No liquidation fees on its buyback programs
- Focuses on investor education
- With 24/7 customer support
- Sluggish transaction delivery times
- No international shipping alternative
Birch Gold Group: Great Staff Overall (4.2/5)
This gold IRA firm deals with numerous investment options perfect for every client. Another thing that makes them stand out among its competitors in the market is that they have an affordable minimum investment.
Birch Gold Group breaks down service and administrative costs on a single page on its website. But what’s interesting is that when figures vary, this company adjusts the prices months before implementing them online.
- Transparent fee structure
- Strong focus on platinum and palladium choices
- Has numerous options for depository services
- With a flat rate option for customers who buy in bulk frequently
- Limited depository options
- Has a longer transaction time
What is IRA-Eligible Gold?
These gold assets meet Internal Revenue Service (IRS) standards and purity requirements if you want to put them in an individual retirement account. This is to avoid involving gold and silver collectibles in the mix.
However, there are some peculiarities to the rule. Gold is also legal tender, meaning you can put some of them in a self-directed IRA. The list includes the following:
- Gold bullion and rounds: These physical precious metals should be 99.5% pure. Further, small gold bars must satisfy the exact weight specifications.
- Gold coins: Similar to bars and rounds, gold coins should have a 99.5% purity level, except the well-known American Gold Eagle coin. These physical gold coins must arrive with a certificate of authenticity, be in mint condition, and have original packaging.
How Can You Invest In IRA-Eligible Gold?
For beginners, you must buy IRA-eligible gold and work with an IRS-approved custodian tasked with ensuring your precious metals meet strict regulations. In addition, all eligible gold assets in an individual retirement account must be inside an IRS-certified depository.
You do not have to worry about this because gold and silver IRA firms can assist you with the different processes. This includes choosing the custodian to arrange your precious metals in storage.
Knowing the basic requirements for purchasing IRA-eligible gold assets is also crucial. You should know and meet the base investment requirement and pay account setup, storage and maintenance, and shipping costs.
What Are The Benefits Of Investing In IRA-Eligible Gold?
If you are not a fan of paper assets but want to keep your investments safe and secure, investing in gold might be an excellent option. Gold is one of the safest investments available today, and it can also help protect your assets if market circumstances change.
If you purchase gold bars or rounds, their worth closely follows the “spot price” of gold. This reflects the current market value per ounce.
Now that you have seen the basics of gold IRAs, it is time to know why you should consider investing in them.
IRA-eligible Gold Assets Provide a Hedge
Note that gold has an inverse association with the dollar’s worth. For instance, when the dollar value declines, gold’s worth tends to increase and vice-versa — as such, putting a portion of a gold IRA into your retirement portfolio could shield you against inflation.
IRA-eligible is a Long-term Asset
You are probably familiar with the fact that gold assets are long-term investments. Precious metals like gold are an excellent fit for retirement accounts as they grow for many decades.
IRA-eligible Gold Delivers Tax-deferred Growth
Similar to a traditional IRA, a gold IRA provides a tax-deferred increase in earnings. Additionally, you will enjoy tax-deductible contributions for your gold IRAs. You can also do this to your Roth account.
How Much Should You Invest In IRA-Eligible Gold?
If you are younger than 30 years old, the most you can contribute to your gold IRA is 6,000 USD annually. The limit for those 50 years and older can rise to 7,000 USD.
Generally, many investment professionals recommend allocating no more than 5 to 10% of an individual’s portfolio to precious metals like gold. While gold commodities can ideally diversify your portfolio and can provide protection against inflation, it is not volatility-proof.
What To Consider When Purchasing IRA-Eligible Gold
Individuals need to weigh the pros and cons regarding their new ventures. While you do not technically need a precious metals IRA to invest in gold and silver assets, opening one can provide substantial tax benefits.
Remember that funds deposited into a traditional IRA are deductible up to allowable limits per year. On the other hand, you can withdraw your Roth IRA tax-free during retirement.
Here are the factors you must consider before investing in gold individual retirement accounts (IRAs):
According to the IRS, workers younger than 50 have a 6,000 USD contribution limit in 2022. For workers 50 and up, they can contribute up to 7,000 USD. If you wish to purchase more gold higher than that yearly, you must do it outside IRA investing.
Setting up a gold IRA is not cheap. It is more costly than a traditional IRA or buying gold outside an IRA. A gold IRA has account and storage maintenance fees and can sometimes have initial setup expenses.
Minimum Investment Requirements
Some gold IRAs demand an initial deposit of 25,000 USD or more. Unless you already have an existing IRA balance to roll over, it may be tough to meet the minimum.
Early Withdrawal Penalty
The national government mint doesn’t want you to spend your retirement funds before retirement. This is why they charge a 10% tax penalty on withdrawals below 59 and a half years old. If you need to liquidate your gold commodities before retirement, an IRA may not be an excellent choice.
Final Thoughts – Gold IRA Eligible
Adding a portion of IRA-eligible gold is a particular way to count as an inflationary hedge to your retirement portfolio mix. Gold assets are not risk-free and may only be ideal for some investors. But given the market and economic uncertainty, gold is an asset worth investing in.
You must find the right dealer for your account to open a new gold IRA. Augusta Precious Metals is one of the ideal choices for your all-around gold IRA investments. Still, if you’re hesitant, other companies may also be a better fit for your situation.